Budget and life cycle in family business in succession process,

Abstract

The aim of this work is to analyze how the budget need is conceived in family businesses in the process of succession. There is a gap about the reasons for using the budget in the context of a family business succession process, whose characteristics and purposes of the budget reflect their need depending on the antecedents the reasons for use. The relevance of the theme lies in understanding the intergenerational succession as a part of the life cycle in family companies and the interface with the management control system (MCS) from the need of the budget with a planning and control tool. As an impact on the area, this study broadens the field of research on budget considering its characteristics and purposes in a context of organizational transition that involves succession in a family business. We adopted the single case study with data collected through semi-structured interviews, observations, and documents. Data were analyzed from the discursive textual analysis whose focus is the contents related to succession from the organizational life cycle, changes in the MCS, and budget need. The results showed that changes resulting from the succession process on the strategies of its planning (professionalization of management, creation of the holding company, and governance) interact and influence the need of the budget. This stems from the reasons for operational planning and strategic training from its antecedents associated with the organizational characteristics of the success and renewal phase of the life cycle. The contribution of the study is based on the combination of succession in family business and budget by making it possible to reflect on the need for a specific tool (the budget) to support goal setting and decision-making in this context. It will contribute to the MCS and family business by understanding the need for budgeting in the succession process. In addition, it will validate the three-phase model of the succession process in a family business as part of the organizational life cycle.

Are the Values of Family Members Consistent With the Organizational Culture of Their Business?

“…Experience. By successfully passing on the family business to the next generation, the experience related to how to reconcile family life with the business grows (Hillen & Lavarda, 2019). Therefore, planning and executing the succession process seems crucial (Drewniak et al, 2020).…”

The presence of women in family SMEs' succession process: a conceptual framework guided by gender perspective

“…Succession allows the firm's continuity and consolidates the business as a family concern. It is therefore a sensitive issue and a critical time in these organizations' life-cycle (Gersick et al, 1997;Murray, 2003;Hillen and Lavarda, 2020). According to Wang (2010), succession is the most important obstacle for the inter-generational sustainability of family firms and consists of transferring business ownership and administration from a "senior" to a "junior" generation, so that control of the business remains in the family.…”

Time Driven Activity-Based Costing

“…No entanto, quando se coloca as pequenas empresas brasileiras como o ponto focal de observações mais cuidadosas, se revelam características, apontadas pela literatura como próprias de organizações de pequeno porte, que não condizem com sua importância econômica, tais como: escassez de recursos; insuficiente acesso a financiamentos; baixa especialização profissional; modelos centralizados para a tomada de decisão e incertezas de continuidade oriundas de dificuldades no processo sucessório familiar (ASSUNÇÃO; INGRID, 2014;HILLEN;LAVARDA, 2020;KOLBARI, 2019;LEONE, 1999) . Destaca-se, porém, que muitas dessas organizações superam essas dificuldades iniciais do negócio e alcançam altos níveis de desenvolvimento.…”